The average interest on long-term mortgage rates fell this past week, after rising for four consecutive weeks. Freddie Mac reports that 30-year fixed mortgage rates averaged 5.09 percent, down from 5.14 percent a week ago and compared with 5.01 percent in 2009. Also, 15-year, fixed loans fell 0.4 percent to 4.5 percent; five-year adjustable-rate mortgages were unchanged; and one-year ARMs declined 0.03 percent to 4.31 percent.
Forecasting Nashville Mortgage Rates
It appears that mortgage rates will remain quite stable in the first quarter of 2010, hovering just above 5 percent. The second quarter of 2010 also looks quite stable with mortgage rates predicted to only rise 0.15 points to around 5.17 percent.
However, the second half of the year appears to be a time when either inflation begins to affect the rate or the Treasury Department purposefully raises the lending rates. Nashville Mortgage rates are predicted to rise another 0.20 percent in Q3 and another 0.20 percent in Q4 leaving the mortgage rate close to 5.57 by the end of 2010.